19 - Austin Community College District



19

CH 19 STUDY GUIDE THE RISE OF A NEW INDUSTRIAL ORDER

PEOPLE, PLACES & EVENTS

1. The late 1800s &the world-wide quest for markets and raw materials

2. Robert Ferguson, T. S. Hudson & America’s economy between the 1860s and 1880s

3. Late-1800s corporations & national networks

4. First “big business” in America

5. Standard time zones

6. Rockefeller, Carnegie & the industrial corporation

7. Systematic businesses

8. Effects of the telephone on American life

9. The costs for building the myriad industrial systems

10. Forms of business organization

11. Advantages of the corporate form of business organization

12. Source of labor for the new factories

13. America’s central economic system

14. Free competition versus high fixed costs

15. Railroads & the competitive jungle

16. Railroads & investment bankers

17. “vertical integration”

18. Corporate mergers after 1893

19. Social Darwinism & William Graham Sumner

20. “Social Darwinism” & Herbert Spencer

21. “single tax” & Henry George

22. American workers & Samuel Gompers’ AFL

23. The American Federation of Labor

24. US workers & industrial accidents in the world

25. Jobs that were “feminized”

26. Unions

27. The Knights of Labor

28. The American Federation of Labor & craft unions

29. Late 1800s strikes: workers’ view

30. Late 1800s strikes: employers’ view

MATCHING: CAPTAINS OF INDUSTRY

|a. Alexander Graham Bell |1. trust in oil |

|b. Andrew Carnegie |2. merger master in steel |

|c. George Eastman |3. integration in steel |

|d. Thomas Edison |4. photography for ordinary folk |

|e. J. Pierpont Morgan |5. productivity through efficiency |

|f. John D. Rockefeller |6. innovation through systems of invention |

|g. Frederick Taylor | |

MATCHING: CONSOLIDATIONS OF INDUSTRY

|a. cartel |1. Standard Oil Company of Ohio (1880s) |

|b. holding company |2. Standard Oil Company of New Jersey (1899) |

|c. oligopoly |3. “Big Five” meatpackers |

|d. pool |4. Michigan Salt Association |

|e. trust | |

COMPLETION

1. A racist theme threaded through the European drive for overseas dominions in the late nineteenth century, justified by a theory known as [ ], which proclaimed that the fittest race would prevail.

2. The Bessemer process, one of the new technologies that accelerated the use of natural resources, converted a raw mineral into [ ].

3. Edwin Drake in 1851 was able to tap into another resource that became a major industry, [ ].

4. Thomas Edison may have invented the electric light, but [ ] made it practical by showing how to use high-voltage alternating current transmitted over long distances.

5. Mexican émigrés in the late 1800s came looking for jobs, particularly jobs in the [ ] sector of the economy.

6. “At the center of the new industrial systems,” according to your text, was the [ ], aiding transportation and communication, and even redefining time itself.

7. David McCallum of the New York and Erie, who had drawn up the first business table of organization, exemplified the [ l] revolution, a process of organizing large corporations in order to rationalize business practices.

8. At first, [ ] served merely as advisors to railroads and other corporations; with such a stake in controlling funds, they eventually found themselves taking control for the purpose of imposing order and centralization.

9. If a company buys up competing companies engaged in the same activity, it is called [ ] growth.

10. If a company acquires all the stages in the production process from raw materials to retail sales, it is called [ ] growth.

IDENTIFICATION QUESTIONS

Students should be able to describe the following key terms, concepts, individuals, and places and explain their significance:

Terms and Concepts

|“railroad time” |Bessemer process |

|New York Stock Exchange |Robber Baron |

|vertical integration |horizontal integration |

|the trust |Standard Oil Company (Ohio) |

|holding companies |Michigan Salt Association |

|Socialist Labor Party |Looking Backward |

|Social Darwinism |the Homestead Steel Mill |

|National Labor Union |Knights of Labor |

|Haymarket massacre |the Pullman strike |

|American Federation of Labor | |

Individuals and Places

|George Eastman |Thomas Alva Edison |

|George Westinghouse |Alexander Graham Bell |

|Daniel McCallum |Jay Gould |

|Gustavus Swift |Andrew Carnegie |

|John D. Rockefeller |J. Pierpont Morgan |

|Frederick W. Taylor |Samuel Gompers |

|Eugene V. Debs | |

MAP IDENTIFICATIONS

Students have been given the following map exercise: On the map on the following page, label or shade in the following places. In a sentence, note their significance to the chapter.

1. Areas of track laid before 1876

2. Areas of track laid after 1876

3. Transcontinental railroad line

4. Railroad time zones

1.

[pic]

Critical Thinking

EVALUATING EVIDENCE (MAPS)

1. The railroad map on page 623 details the growth of the railroad system after the Civil War. In what direction does growth proceed? Why?

2. How did trunk lines (of the kind illustrated in the inset of the railroad map on page 623) make for more efficient use of rail lines?

EVALUATING EVIDENCE (ILLUSTRATIONS AND CHARTS)

1. According to the chart on page 614, how does American steel production compare to steel production in other countries? How do you account for the differences?

2. A boom-and-bust business cycle afflicted the late nineteenth century (see chart on page 630). At what intervals did the cycles occur, and how deep were the busts? Is there any correlation between busts and political and social protest? If so, why?

3. Thomas Edison systematized inventing but was also a master businessperson. Does the picture of him (on page 615) hearken back to an older image of inventors or represent his innovative approach to inventing? Explain.

4. What generalizations can you make about the nature of “women’s work” from the picture on page 634? How were women workers affected by the managerial revolution and advances in office technology?

5. The strike (depicted on page 637) arrayed management against labor. When did this one occur? How might the managers be responding? Is there any indication that violence was imminent? What impression did the artist intend to make by including the woman standing with a child in her arms?

6. According to the photograph on page 616, how has the industrial revolution affected the financial world on Wall Street? In what ways might it have changed the way the financial community conducted business?

CRITICAL ANALYSIS

Students have been asked to read carefully the following excerpt from the text and then answer the questions that follow.

Carnegie succeeded, in part, by taking advantage of the boom-and-bust business cycles of the late nineteenth century. He jumped in during hard times, building and buying when equipment and businesses came cheaply. He also had a knack for finding skilled managers who employed administrative techniques pioneered on the railroads. Carnegie set managers against each other in races to quicken the pace of production. The winners received handsome bonuses, the losers embarrassing telegrams: “Puppy dog Number Two has beaten puppy dog Number One on fuel.” Competition was also Carnegie’s way of dealing with rival steelmakers. To undercut contenders, he would scrap new machinery, a new mill, even his own workers for the sake of efficiency and low costs.

The final key to Carnegie’s success was expansion and still more expansion: horizontally, by purchasing and constructing more and larger steel mills; and vertically, by buying up sources of supply, transportation, and eventually even sales. Beneath his steel mills lay a supporting network of industries: huge furnaces for making pig iron and ovens for making coke; 40,000 acres of coal land; fleets of railway cars and ore-carrying steamers; a shipping company; a docking company; and nearly two-thirds of the Mesabi iron ore range. Controlling such an integrated system, Carnegie could assure a steady flow of materials from mine to mill and market as well as profitable investments at every stage along the way. In 1900 his company turned out more steel than Great Britain and made $40 million in profits....

Integration of the kind Carnegie employed expressed the logic of the new industrial age. More and more, the industrial activities of society were being linked in one giant, interconnected process.

PRIMARY SOURCE: Henry George on the Nature of Property*

Henry George, a self-taught social philosopher and one of the most original economists of the late nineteenth century, settled in California in 1868 after traveling in Asia. Seeing rampant speculation in land and want amid plenty, George described America as “the House of Have and the House of Want.” He believed wealth was created by applying labor to land and advocated redistribution of wealth promoted by a single tax on land.

What constitutes the rightful basis of property? What is it that enables a man justly to say of a thing, “It is mine?” From what springs the sentiment which acknowledges his exclusive right as against all the world? Is it not, primarily, the right of a man to himself, to the use of his own powers, to the enjoyment of the fruits of his own exertions? Is it not this individual right, which springs from and is testified to by the natural facts of individual organization—the fact that each particular pair of hands obey a particular brain and are related to a particular stomach; the fact that each man is a definite, coherent, independent whole—which alone justifies individual ownership? As a man belongs to himself, so his labor when put in concrete form belongs to him....

If production give to the producer the right to exclusive possession and enjoyment, there can rightfully be no exclusive possession and enjoyment of anything not the production of labor, and the recognition of private property in land is a wrong.

*From Henry George, Poverty and Progress (1879).

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